Immunotec Reports Fourth Quarter and Full-Year 2016 Results

VAUDREUIL-DORION, QUEBEC–(Marketwired – Jan 26, 2017) – Immunotec Inc. (TSX VENTURE:IMM), a direct-to- consumer company and leader in the nutritional industry (the “Company” or “Immunotec”), today announced its fourth quarter financial results for Fiscal 2016. All amounts in this press release are in Canadian dollars unless otherwise indicated.

“Annual revenues surpassed our expectations and reached an all-time high of $109 million, reflecting solid performances in all regions by Immunotec’s Consultants and Employees. The weakness of the Mexican Peso significantly impacted profitability during the fourth quarter. On a currency neutral basis, we estimate that this volatility reduced the Adjusted EBITDA1 by approximately $3.4 million compared to last year”, said Charles Orr, Chief Executive Officer.

QUARTERLY PERFORMANCE HIGHLIGHTS

Network sales amounted to $29.7M, an increase of 30.7% over last year, while sponsoring1 of new customers and consultants increased by 50.9% over last year.

Network sales in key geographies grew by 58.4% in Mexico, 15.9% in the United States and 6.7% in Canada.

Margin before expenses were down by 2.4%, to 73.0%, and Adjusted EBITDA1 amounted to 2.9% of revenues, considering the impact from the recent foreign currency devaluation of the Mexican Peso.

“For the year, we are very pleased by the overall performance of our Network Sales and Sponsoring activities, representing a significant recovery over the prior year which was negatively impacted by the implementation of a 16% value-added tax in Mexico”, said Patrick Montpetit, Chief Financial Officer of Immunotec. “Management’s disciplined approach to corporate expenses led to a significant decline of these expenses as a percentage of total revenues. Finally, our balance sheet improved substantially with year-end cash of $13.9 million, reflecting solid cash flows from operations.”

“Among efforts to contain the impact of the weak Mexican Peso, we have implemented price increases of 5 to 7% in all our markets effective on January 1st, 2017. This combined with other management initiatives should mitigate a significate portion of the foreign exchange impact on profitability. As we enter Fiscal 2017, we are confident in our ability to maintain the momentum of the past year and continue to better leverage the scale of our Company. Furthermore, the Company is pleased to announce that Charles Orr’s employment agreement has been renewed until June 30, 2017″, concluded Mr. Montpetit.

Results of operations

For the periods ended October 31,

Three-months

Twelve-months

(‘000s of C$, except for share and per share data)

2016

2015

2016

2015

Revenues

32,113

24,804

109,013

84,758

Cost of sales

8,674

6,113

28,200

20,350

Margin before expenses

23,439

18,691

80,813

64,408

Expenses

22,708

16,819

77,009

59,194

Operating income

731

1,872

3,804

5,214

Net finance (income) expenses

(505

)

(58

)

179

137

Income taxes

650

215

1,510

1,035

Net profit

586

1,715

2,115

4,042

Total comprehensive income

663

1,626

1,934

4,006

Total basic and diluted net profitper common share

0.01

0.02

0.03

0.06

Weighted average number ofcommon shares oustandingduring the year

Basic

69,761,628

69,287,627

69,639,953

69,152,836

Diluted

70,083,720

69,290,915

69,886,364

69,156,574

Revenues and sponsoring 1

For the periods ended October 31,

Three-months

Twelve-months

(‘000s of C$)

2016

2015

Variation

2016

2015

Variation

Network sales

29,671

22,707

30.7

%

100,602

77,320

30.1

%

Other revenue

2,442

2,097

16.4

%

8,411

7,438

13.1

%

32,113

24,804

29.5

%

109,013

84,758

28.6

%

Network sales in key markets in local currency

2016

2015

Variation

2016

2015

Variation

Mexico (‘000s of Mexican pesos)

241,970

152,738

58.4

%

736,584

503,666

46.2

%

United States (‘000s of US$)

6,695

5,778

15.9

%

24,567

20,049

22.5

%

Canada (‘000s of C$)

3,134

2,936

6.7

%

12,022

11,312

6.3

%

Sponsoring1of new customers and consultants in key markets (# of people)